Regulators with the commission will spend months evaluating OG&E’s financials to determine whether the company can hike up its average residential base rate by $23.88 a month. That number could be different in some houses depending on electricity use.
New power generation, grid infrastructure updates, community programs and technology are among the investments leading to the increase, according to the company.
The generation costs come from the replacement of two 60-year-old natural gas units with new turbines at its Horseshoe Lake plant and replacing other units at its Tinker Power Plant.
The company already received preapproval for the projects, which haven’t been included in customer bills.
The base rate request comes after a summer of soaring temperatures across the state and expensive electricity bills. The final customer cost could be lower than the initial request after regulators work on the case.
Christi Woodworth, chief communications officer, said the company is also proposing new customer benefits to help with bill payment.
“Our customers have told us time and time again they want us to take care of seniors and low-income families, our most vulnerable customers,” she said. “And some of those costs are shared across our entire customer base.”
Expanding the senior discount and the low-income program are parts of the plan. Customers today have to receive federal funds through the Low Income Home Energy Assistance Program (LIHEAP) to qualify for OG&E’s benefit. But those federal funds can run out quickly, Woodworth said, and not everyone who qualifies ends up with the money.
“We know there are folks who need more assistance than that and people can qualify all year for LIHEAP funding,” she said. “So, we may look at: if you're qualified, but maybe you haven't received LIHEAP funding yet, you could qualify for the discount.”
A pilot program to forgive past-due balances, a choose-your-own-due-date choice and a pre-pay option are also among the new proposals.
“People who might be paid in cash or non-traditional ways or on an infrequent basis can actually load up their account with dollars,” Woodworth said.
Although the company inked a deal in April to power three new Google data centers, Woodworth said the proposed increase does not include costs associated with them.
“They are not currently consuming electricity from us,” she said. “This rate review is not about increased electricity from data centers.”
The utility company filed a large-load tariff — a set of special rates and conditions for customers like data centers — with the Corporation Commission in June. A public hearing about the tariff is expected in November.
Residents can submit public comments on the rate case at any time.
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